A state appellate court has denied Gov. Arnold Schwarzenegger’s request to proceed with another round of furloughs.
The decision Thursday by the First District Court of Appeal in San Francisco means thousands of state workers will not be furloughed.
Before the ruling, the administration instructed employees to report to work Friday while the legal fight continued.
Schwarzenegger recently ordered workers to be furloughed three days a month as a way to conserve cash while the state tackles a $19 billion deficit. A previous round of furloughs ended in June.
An Alameda County Superior Court judge had issued a temporary restraining order preventing the governor from implementing the furloughs. The appellate court declined to lift that order.
Schwarzenegger spokesman Aaron McLear says the administration will appeal to the California Supreme Court.